For marketing purposes

SARON is replacing Market oriented With the UBS SARON Mortgage – the mortgage based on the Swiss with an unlimited term and a variable

Are you looking for flexible financing for your real The interest period is three months. The interest rate and estate with an unlimited term? Do you follow hence the amount of interest to be paid are determined on the financial markets and are you willing to accept the penultimate day of the interest period. short-term fluctuations in interest rates? If so, the UBS SARON Mortgage allows you to benefit from particularly attractive interest rates. Margin Interest rate

Margin Facts 0 Interest rate Variable Contract term Unlimited Time / Interest rate risk Interest rate fluctuations arise during Interest periods the contract term Client interest rate SARON-daily rate Benchmark interest rate Based on the Compounded Swiss Compounded SARON¹ for the calculation of the client interest rate Average Rate Overnight (SARON)¹ ate of calculation of the client interest rate for the current interest period (backward-looking) Use To all types of real estate For illustrative purposes only. Accounting period Three months, starting at the end of each quarter² Development of short and long-term interest rates Ordinary cancellation Mutual notice period of 13 months In a normal interest rate environment, money market rates are lower than interest rates for longer-term financing, but they ¹ To calculate the customer interest rate, the Compounded SARON can can also change relatively quickly. This makes the UBS SARON never be less than zero. ² If the mortgage is paid out during a quarter, the first accounting period starts on Mortgage particularly suitable for people who follow events the date on which the mortgage is paid out and continues until the end of the on the money and capital markets and expect interest rates to quarter. The amount of interest to be paid is calculated and announced one day fall or trend sideways. before the end of the accounting period.

SARON and Compounded SARON explained in brief

The SARON (Swiss Average Rate Overnight) has existed since Interest rate 2009 and is calculated daily on the basis of completed trans- actions and binding quotes (buy and sell prices) in the Swiss money market. The calculation method was developed by SIX Time Group Ltd (SIX) in association with the Swiss National Bank 10 years SARON 3M Compound (SNB). The SARON is publicly visible, transparent and is calcu- Source SIX – SARON 3 months Compound Index, UBS lated and published by SIX daily after the close of trading. For illustrative purposes only. Performance figures refer to the past and past perfor- mance is not a reliable indicator of future performance/results. The Compounded SARON¹ is formed in order to obtain a benchmark interest rate over a specific term from the daily Would you be interested to find out your current interest rates. It is calculated for a certain period from the average of amounts? UBS E-Banking gives you constant access to your the SARON rates compounded daily. personal mortgage overview, where you can view accrued interest and additional information about your mortgage. The UBS SARON Mortgage explained in brief The UBS SARON Mortgage is a money market mortgage. It has an indefinite term and can be taken out at any time. The customer interest rate is made up of the retrospective Compounded SARON¹ plus an agreed fixed customer margin.

¹ To calculate the customer interest rate, the Compounded SARON can never be less than zero. How you benefit What are the risks associated with SARON-based – You benefit from transparent interest rates that are in mortgages? line with market conditions, as the UBS SARON Mortgage – The UBS SARON Mortgage is a money market mortgage is geared to the development of the CHF money market. with a variable interest rate. – To protect yourself against rising interest rates, you have the – In a normal interest rate environment, money market option of switching to a multi-year UBS Fixed-Rate Mort­ rates are lower than interest rates for longer-term financing, gage, in whole or in part, within a few working days. With but they can also change relatively quickly. a UBS Fixed-Rate Mort­gage, you fix the interest rate for the – The amount of interest to be paid can only be determined entire term of the contract. on the penultimate day of the interest period and may differ – Regular direct amortization can be agreed by contract. You from that of the previous period. can also save taxes with the help of indirect amortization. What strategy can be used to reduce interest rate risks? Ideal time to – As a rule, a rise in interest rates on long-term fixed change product mortgages is a good indicator of an imminent rise in Ideal interest rate environment interest rates on money market financing.

Interest rate for UBS SARON Mortgage – To make sure you don’t miss the right time to switch from a UBS SARON Mortgage to a UBS Fixed-Rate Mortgage, you should therefore not only pay attention to developments in short-term interest rates, but also keep an eye on long-term market rates. – You can also reduce the interest rate risk by combining different terms. With diversified mortgage financing, Time you also avoid having to completely renew the overall UBS Fixed-Rate Mortgage, 5 years UBS SARON Mortgage financing at the worst possible time. For illustrative purposes only. Performance figures refer to the past and past – We recommend that you regularly review your mortgage performance is not a reliable indicator of future performance/results. strategy with your client advisor.

Key points – Financing with close links to the money market – Indefinite contract term – Attractive interest rates with short-term fluctuations – Possibility to switch to a UBS Fixed-Rate Mortgage

For all your questions ubs.com/mortgages UBS Switzerland AG P.O. Box UBS Mortgage Line 0800 884 558 8098 Zurich Find your nearest branch ubs.com/locations

This publication is intended for information only. It is not intended as a recommendation, an offer, a solicitation of an offer or as legal or tax advice. Before making a decision, you should obtain professional advice. UBS reserves the right to alter its services, products or prices at any time without prior notice. Individual services and products are subject to legal restrictions and hence may not be offered throughout the world without restriction. Complete or partial reproduction without explicit consent of UBS is not permitted. © UBS 2020. The key symbol and UBS are among the registered trademarks of UBS. All rights reserved. June 2020.